View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. IPO Industry
December 7, 2021updated 07 Jan 2022 5:32am

Drug developer BenevolentAI enters SPAC merger deal with Odyssey

The merged company will be headquartered in London and led by the current CEO of BenevolentAI.

UK-based clinical-stage artificial intelligence (AI) drug discovery firm BenevolentAI has signed a definitive agreement for a business combination with the special-purpose acquisition company (SPAC) Odyssey Acquisition.

Free Report
img

What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
  • Macroeconomic and demographic environment
  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
by GlobalData
Enter your details here to receive your free Report.

According to the deal, BenevolentAI is valued at a post-money valuation of up to $1.7bn (€1.5bn) and a pre-money valuation of $1.24bn (€1.1bn).

The company has developed an AI-based drug discovery platform, which, along with scientific capabilities and complete wet lab facilities, aids in delivering new drug candidates.

The deal is anticipated to raise up to $440.2m (€390m), which includes $152.4m (€135m) in PIPE investment and gross cash of $338.6m (€300m) held by Odyssey in escrow.

The PIPE investors include Temasek, the current shareholder of BenevolentAI, the company’s strategic partner AstraZeneca, healthcare specialists Ally Bridge and Invus and several other institutional investors.

Present stakeholders of BenevolentAI are anticipated to own 67.4% of the merged firm while Odyssey shareholders and PIPE investors will own 23.5% and 9.1% of pro-forma equity, respectively, on concluding the agreement.

The latest transaction is claimed to be the largest European SPAC combination deal so far.

Proceeds from the proposed deal will be utilised to expedite the development of BenevolentAI, improve its clinical pipeline and continue to invest in its technology platform.

To be headquartered in London, UK, the merged company will be led by present BenevolentAI CEO Joanna Shields.

Shields said: “Our AI platform empowers scientists to leverage biomedical and experimental data at scale to understand the underlying causes of disease and develop more effective medicines, faster.

“Every drug in our pipeline of 20+ programmes has been generated by the Benevolent Platform, which has a proven track record of scientifically validated discoveries, both in-house and in partnership with leading pharmaceutical companies.”

The board of directors of Odyssey and of BenevolentAI have unanimously accepted the proposed business combination.

Subject to meeting necessary closing conditions and approvals, the deal is anticipated to conclude in the first quarter of next year.

In May 2019, AstraZeneca collaborated with BenevolentAI to develop therapies to treat chronic kidney disease and idiopathic pulmonary fibrosis.

Related Companies

Free Report
img

What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
  • Macroeconomic and demographic environment
  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The pharmaceutical industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Pharmaceutical Technology